CoinWorld News, the Zetachain team stated in a post-attack analysis released on Wednesday that the vulnerability which led to their recent $334k loss was reported through their bug bounty program before the attack but was considered normal behavior and ignored. The attack targeted their cross-chain gateway contract, with the attacker exploiting three design flaws, namely allowing arbitrary cross-chain instructions, a too-narrow restriction on executing almost all contract commands, and uncleared unlimited spending permissions. Zetachain said that prior to the attack, the attacker funded their wallet through Tornado Cash and conducted address pollution activities in their transaction history. The platform is rolling out a patch that will permanently disable the arbitrary call function and replace unlimited token approvals with precise amount approvals.

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